FX.co ★ Zambia Inflation Rate Keeps Slowing

Zambia’s annual inflation rate eased to 6.5% in June 2026, its lowest level since February 2018, down slightly from 6.6% in May. Food inflation moderated to 6.7% from 6.9%, while non-food inflation dipped to 6.0% from 6.1%, supported by a bumper corn harvest and a resilient domestic currency. In parallel, the government suspended fuel taxes under a moratorium lasting through the end of June.

The kwacha has appreciated by nearly 20% since the start of the year, underpinned by robust copper mining inflows and progress on restructuring the country’s national debt, which has helped to contain inflationary pressures. Recently, Zambia secured investor support for a buyback of its $1.36 billion 2053 bond, a move intended to lower borrowing costs, strengthen public finances, and expand access to electricity.

On a monthly basis, the consumer price index (CPI) rose 0.1% in June, after a 0.25% increase in the previous month.